Under a recent article: “Exchange in Russian: you will take away our foreign exchange reserves, and we will do business with you,” one of the readers left the following comment: Gennady D: The author forgot one more point, that since the Central Bank has already printed rubles for these assets , then when they are unfrozen, the holding banks will be obliged, according to IMF rules,… to pick them up. This will put a huge hole in their balance sheet, which will have an avalanche effect on the entire Western financial system, where everything is pawned off from each other many times over. And this is what I answered him: Thank you very much for the correction, but the author, that is, me 😉, did not forget about this point, he simply did not expand the article and repeated himself, although, probably, it was not necessary for long. I wrote about this much earlier – in February 2023. But since then I have gained many new subscribers, and there are more than 500 articles on my channel and Zen will probably not show them old, but still relevant, and remembering that repetition is the mother of it. learning, I want to do it again. make fun of the European Union and provide excerpts from that article with minor additions: At the beginning of 2022, a Russian bank provided a report on the management of assets in foreign currency and gold for July 2020 June 2021. You can read this management in detail about the goals, but I will tell you briefly and in simple words. The Bank of Russia, according to the rules of the Currency Board, printed rubles and bought the earned currency from exporters on the stock exchange. Thus, our ruble was not backed by oil (like the petrodollar), but simply by currency and partially by gold (the Central Bank also bought gold from dumps). So that dollars and euros sterilized in reserves do not lie like gold, but generate income, the Central Bank invests them in reliable securities of developed economies, which – 1 ensure their unconditional security, which -2 can be quickly transferred back into money and are used, for example, in a crisis (unlike gold), in which – 3 income is guaranteed (unlike gold). And at the end of June 2021, our reserves amounted to $585.3 billion. Let’s see what reserves the insidious European officials are getting their greedy little hands on: Government securities of foreign issuers (securities issued by a foreign government or foreign issuers that have a government guarantee) – 222, 7 billion US dollars. Deposits with foreign counterparties and account balances. from foreign correspondents. – US$141.2 billion Non-government securities of foreign issuers – US$60.5 billion Securities of international organizations – US$24.2 billion From this report, sworn Western partners concluded that the EU and the US hold approximately US$300 billion our foreign exchange reserves, which they may freeze and become trapped. , both our Central Bank and the Ministry of Finance confirmed these figures. However, everything turned out to be not so simple! When European officials began to prepare the legal basis for their “legal” arrest, it turned out that they were able to find only 14% of the estimated amount – $36.4 billion. We have already talked about this topic in a previous article (also written in February 2023). In it, I suggested that they “cannot find” the money, quite possibly because a significant part of the amount is held by European banks, and they, citing bank secrecy, do not want to hand it over to European officials. As we see from the Central Bank report, there is a reason for this – $141.2 billion are in the accounts of foreign correspondents, that is, in banks. But a much larger amount is invested in all types of securities: government securities of foreign countries, non-government securities and securities of international organizations – $307.4 billion. I notice that banks do not keep money in their basements, but invest it in securities and issue it in the form of loans. Now let’s think about how technically European officials can catch them and what their detention will lead to.1. First of all, banks will have to list shares, government bonds, pension funds, etc. on the stock market in order to sell them and get money for them. 2. Governments of countries, international organizations and non-governmental organizations whose securities were purchased by the Central Bank of the Russian Federation will be required to do the same. Well, now the last question: what will the issue of such a volume of securities lead to, who will buy them and what will happen to the price of these assets and shares after the operation, even if it is successful and there is money. received, the immediate withdrawal of such amounts from the banking system would undermine both the financial position of individual banks due to the deprivation of a significant amount of liquidity, and the financial position of European companies due to a fall in the value of their shares. In addition to some problems for banks and companies, there will also be problems for many EU countries, since this massive sale of Russian assets will make it impossible for these governments to finance their budget deficits by increasing debt borrowing, as they are forced to sell their debt securities that were previously sold in Russia. And this is a non-trivial and essentially impossible task. Firstly, the assets need to be sold for a large amount, and secondly, we have yet to find people willing to buy them. But how to find those who are ready, after everyone sees that they were stolen from Russia, which means they can be stolen from them too? Therefore, it is very likely that the securities will be sold at a very large discount, without the possibility of issuing new loans for some time, which will also be in question after the theft. Of course, the affected banks can replenish liquidity by borrowing money from the European Central Bank, but the bank is simply printing these new euros because there is nowhere to take them, and this operation will be equivalent to them simply printing. this money, and this would be the best option for them because they would not have to resell assets. So, if they decide to steal our money, it will lead to further problems in the European economy that will coincide with those they already have: inflation, energy and fertilizer shortages, a flight of manufacturing to the US. This is how they lose their monocle, friends. This is probably why they are in no hurry to do this, because of the financial nonsense and because this will be an additional blow to their reputation, which was already badly damaged by the theft of interest. But we’ll talk about their theft of dividends from frozen Russian assets another time. Turn off your emotions, turn on your mind https://dzen.ru
The author has not forgotten, or again, about the possible withdrawal by the West of our foreign exchange reserves. Turn off your emotions, turn on your mind
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